Socket Mobile, Inc. (SCKT): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind Socket Mobile, Inc.'s structure as we head into late 2025, and honestly, the canvas shows a company making a sharp turn. We're seeing a clear pivot away from the old retail point-of-sale reliance toward the much larger, ruggedized industrial sector, driven by products like XtremeScan. With TTM Revenue at $15.94 Million USD and a Q3 2025 print of $3.1 million, understanding how their proprietary CaptureSDK ties into these new, long-cycle industrial contracts is key to seeing where the next growth phase is hiding. Dig into the nine blocks below to see the full strategic map.

Socket Mobile, Inc. (SCKT) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that keep Socket Mobile, Inc. (SCKT) moving product, especially when macro factors like tariff uncertainty are pressuring the top line. As of the third quarter of 2025, the company reported revenue of $3.1 million for the quarter, with a cash balance of approximately $2.0 million as of September 30, 2025.

Application Providers (App Providers) like Shopify and Square

Socket Mobile, Inc.'s revenue is fundamentally tied to the deployment of third-party barcode-enabled mobile applications. These applications, which integrate Socket Mobile, Inc.'s scanners and readers, service key vertical markets.

• Mobile Applications servicing the specialty retailer market are primary revenue drivers.
• Mobile Applications servicing the field service market are primary revenue drivers.
• Mobile Applications servicing the digital ID market are primary revenue drivers.
• Mobile Applications servicing the transportation market are primary revenue drivers.
• Mobile Applications servicing the manufacturing market are primary revenue drivers.

Global network of Distributors for physical product shipments

The relationship with the global network of distributors is critical, as revenue is driven by gross shipments to these partners. In Q2 2025, concerns around potential tariffs led to significantly reduced purchases from these distributors, which impacted gross shipments. This channel dynamic continued into Q3 2025, where distributor bookings were reduced, lowering reported revenue even as sales-out to end users remained steady compared to Q2 2025.

Online Resellers including Amazon and CDW for direct sales

Specific financial data regarding sales volumes or revenue contribution from online resellers like Amazon and CDW is not explicitly detailed in the latest public filings, but these channels are part of the broader distribution framework.

Thousands of registered developers using CaptureSDK

The developer ecosystem is a key resource, as it builds out the application base for Socket Mobile, Inc.'s hardware. The company maintains a network of developers who use its software tools to embed sophisticated data capture into their mobile applications. The launch of CaptureSDK 2.0 is a strategic move to support next-generation Bluetooth LE hardware.

Metric	Data Point (Late 2025)
Registered Developers	Thousands
CaptureSDK 2.0 Adoption Expectation	Most apps expected to adopt within approximately 90 days

Strategic sourcing partners to mitigate tariff risks

Tariff uncertainty has been a noted headwind, pressuring deployments and requiring management to work with customers and adjust sourcing. The company has been actively managing its supply chain to mitigate these risks.

Sourcing Location (Q1 2025 Data)	Percentage of Supply Chain
Mexico	30%
Taiwan	20%
China	10%

Management has been implementing strategic sourcing and pricing actions to protect margins against these cost pressures.

Socket Mobile, Inc. (SCKT) - Canvas Business Model: Key Activities

You're looking at the core engine of Socket Mobile, Inc. (SCKT) operations as of late 2025. These are the things the company absolutely must execute well to keep the lights on and drive growth, especially now that they've launched into the industrial space.

Hardware design and manufacturing (scanners, readers)

This activity centers on designing, producing, and shipping the physical data capture tools. The financial performance reflects the success of these efforts, though recent quarters show softness in the legacy channel.

For the first quarter of 2025 (ended March 31, 2025), Socket Mobile, Inc. reported total revenue of $4.0 million, down 20% year-over-year from $5.0 million in Q1 2024. The gross margin for that quarter was 50.4%. By the second quarter of 2025 (ended June 30, 2025), revenue was $4.04 million, with a gross margin of 49.9%. The company noted that revenue for the quarter ending September 30, 2025, was $3.11 million, a decrease of -19.77% sequentially. Still, the company's Trailing Twelve Months (TTM) revenue as of December 2025 was reported at $15.94 Million USD.

The manufacturing focus is clearly shifting toward the new industrial line, which commands a much higher price point than previous offerings.

Product/Metric	Value/Status	Reference Period
Q1 2025 Revenue	$4.0 million	Three months ended March 31, 2025
Q2 2025 Revenue	$4.04 million	Three months ended June 30, 2025
Q3 2025 Revenue	$3.11 million	Quarter ending September 30, 2025
Q1 2025 Gross Margin	50.4%	Three months ended March 31, 2025
XtremeScan iXS963 Price	$1,847	Launch Price
XtremeScan iXG963 Price	$1,947	Launch Price

Software development and maintenance of CaptureSDK 2.0

Software is the glue that connects the hardware to the customer's application. Socket Mobile, Inc. made a significant move here by launching its next-generation platform.

The company announced the launch of CaptureSDK 2.0 on October 8, 2025. This is a unified developer platform designed to support future lower-cost hardware while providing tangible benefits now.

• CaptureSDK 2.0 adds Bluetooth LE support for future devices.
• It maintains 100% compatibility with existing Socket Mobile scanners.
• The private repository access for SDKs was set to close in June 2025, moving everything to public platforms like GitHub.
• The first new model intended to leverage this SDK, the SocketScan S721, has a stated retail price of $199 and a launch window in Q4 2025.

Managing the global distributor and reseller channel

This involves maintaining relationships with the network that moves the bulk of the standard scanning products. This channel faced headwinds in 2025.

Management noted that concerns around potential tariffs in Q2 2025 led to significantly reduced purchases from distributors, which in turn impacted gross shipment volumes. To manage this, the company implemented cost-saving measures, including reductions in operating expenses, which fell to $2.7 million in Q2 2025 from $2.9 million in Q1 2025.

R&D for new industrial products like XtremeScan

This is the forward-looking investment to break into new, larger markets. The XtremeScan family is the direct result of this effort, marking entry into the industrial barcode market after a two-year effort.

The XtremeScan products, like the iXG and iXS Series, are designed to serve as full-featured handheld computers integrated with the iPhone 16e, targeting the $27 billion mobile handheld computing market. The market for these ruggedized solutions is projected to grow to $40 billion by 2034. The devices feature a 46-foot barcode scanning range. For context on prior investment, the company's R&D expense for the full year of 2024 was $4.7 million.

Securing long-cycle, large-scale industrial deployment contracts

Landing major, multi-period contracts is crucial for stabilizing revenue, especially when the distributor channel is soft. This validates the new product strategy.

Socket Mobile, Inc. secured purchase orders from a Fortune 50 industrial customer in Q1 2025 for a long-term rollout. This is a key indicator of product-market fit in the ruggedized scanning and handheld computing segment. The company's cash balance as of June 30, 2025, was $2.6 million, which was bolstered by a $1.5 million secured subordinated convertible note financing completed in May to help navigate the challenging period.

Finance: draft 13-week cash view by Friday.

Socket Mobile, Inc. (SCKT) - Canvas Business Model: Key Resources

You're looking at the core assets Socket Mobile, Inc. (SCKT) is relying on right now to navigate the current market. Honestly, it's a mix of established software IP and newer hardware aimed at specific, high-value sectors.

Proprietary CaptureSDK software platform and IP

The intellectual property here centers on the software that makes the hardware useful. Socket Mobile, Inc. launched CaptureSDK 2.0 on October 8, 2025, which is foundational for their next-generation devices. This platform enables seamless transition to Bluetooth Low Energy (LE) technology while maintaining 100% compatibility with the existing installed base of scanners. Management expects most application providers to adopt the new SDK within approximately ~90 days of its release. The CaptureSDK itself has been integrated into thousands of applications.

Inventory of cordless barcode scanners and NFC/RFID readers

The physical assets include the current scanner inventory and the rollout of new models. Socket Mobile, Inc. announced the DuraScan D751, a durable NFC/RFID contactless reader and writer, on December 2, 2025, with an MSRP of $349. Furthermore, the first of the next-generation Bluetooth LE scanners, the SocketScan S721 (1D/2D), was scheduled for release in Q4 2025 with a retail price of $199.

Here's a quick look at the key product and platform milestones:

Resource/Product	Key Metric/Date	Value/Status
CaptureSDK Version	Launch Date	2.0 (October 8, 2025)
SocketScan S721 Scanner	Scheduled Release Quarter	Q4 2025
SocketScan S721 Scanner	Retail Price	$199
DuraScan D751 Reader/Writer	Announcement Date	December 2, 2025
DuraScan D751 Reader/Writer	MSRP	$349

Cash balance of approximately $2.0 million as of Q3 2025

Liquidity is a critical resource to watch. The cash balance for Socket Mobile, Inc. as of September 30, 2025, stood at approximately $2.0 million. This compares to $2.6 million at the end of Q2 2025 (June 30, 2025) and $2.5 million at December 31, 2024. Management is focused on achieving EBITDA neutrality in Q4 2025, contingent on pipeline conversion, to manage this cash position.

Technical expertise in mobile data capture and iOS integration

The expertise is demonstrated by the platform's reach and compatibility focus. The company maintains a commitment to supporting Apple's ecosystem, with CaptureSDK achieving full compatibility with iOS 18. This ensures stability and efficiency for end-users relying on their hardware with iPhones and iPads. The platform's design allows end-users to interchange any of Socket Mobile, Inc.'s data capture devices.

Key elements of the technical resource base include:

• SDK integration across thousands of applications.
• Full compatibility with iOS 18.
• Support for Bluetooth Low Energy (LE) technology.
• Compatibility with existing scanners and future hardware.

Relationships with Fortune 50 industrial customers

The strategic pivot is evidenced by traction in the industrial space. Socket Mobile, Inc. secured initial Purchase Orders (POs) from multiple Fortune 50 customers. This industrial scanning and handheld computing segment is seen as diversifying the revenue base beyond traditional retail. These initial deployments span sectors including warehousing/logistics, manufacturing, mining, energy, and construction. Still, you should note these rollouts are characterized as long-cycle deployments.

Finance: draft 13-week cash view by Friday.

Socket Mobile, Inc. (SCKT) - Canvas Business Model: Value Propositions

Socket Mobile, Inc.'s value proposition centers on delivering dependable data capture tools that directly translate into operational efficiency for mobile workers across various sectors.

Seamless, reliable data capture for mobile workforces is a core offering, underpinning the utility of their scanners and readers for daily tasks. The company's focus on integration helps frontline workers collect data more accurately, a necessity when facing market softness, as seen in the Q3 2025 revenue of $3.1 million, a 20% decline year-over-year. Still, the gross margin remained relatively strong at 47.7% in Q3 2025, indicating value retention in the product mix.

The Ruggedized XtremeScan for harsh industrial environments provides a specific answer to durability needs. This product line is specifically highlighted for attracting interest, even with lengthy sales cycles. The XtremeScan family includes models like the XG640 with an MSRP of $899, the XS640 at $799, and the XS630 at $699, positioning them as industrial-grade tools.

Single SDK integration for all products, simplifying development is a key technical value. The launch of CaptureSDK 2.0 serves as the foundational software for next-generation data capture products, designed to streamline the development cycle for partners.

Enhanced productivity via integration with iOS and Android devices speaks directly to the Bring Your Own Device (BYOD) trend. The XtremeScan line integrates with iOS devices, helping frontline workers collect data more accurately. This cross-platform compatibility supports the existing deployment base, which relies on third-party barcode-enabled mobile applications integrating with Socket Mobile's cordless scanners.

The strategic move toward Diversification beyond retail into the $27 billion industrial market is a major proposition. Socket Mobile announced its entry into the $27 billion mobile handheld computing market with the launch of the XtremeScan iXG and iXS Series, which feature fully integrated iPhone 16e devices. This targets a segment where industrial scanners are growing faster than general-purpose models. The broader Mobile Laser Scanning Market is estimated at USD 31.7 billion in 2025, showing the scale of adjacent opportunities.

Here's a quick look at the recent financial context surrounding these value propositions:

Metric	Q2 2025 Value	Q3 2025 Value
Revenue	$4.04 million	$3.1 million
Gross Margin	49.9%	47.7%
Operating Expenses	$2.7 million	$2.5 million
Operating Loss	$677,000	$1,058,000

The company is actively managing costs, evidenced by operating expenses being reduced to $2.7 million in Q2 2025 from $3.1 million in Q2 2024, and a 13% reduction in operating expenses YoY in Q3 2025.

The value proposition is also supported by specific product capabilities:

• XtremeScan line is now compatible with Apple's latest iPhone 16.
• New XtremeScan models offer fast 1D/2D barcode scanning or precise 1D laser scanning.
• The company's readers received official certification as My Number Card readers in Japan.

Finance: review Q3 2025 operating expense reduction against Q4 2025 budget by next Tuesday.

Socket Mobile, Inc. (SCKT) - Canvas Business Model: Customer Relationships

The customer relationship strategy for Socket Mobile, Inc. (SCKT) centers on a dual approach: high automation for broad application partners and high-touch engagement for large, complex industrial accounts. This is set against a backdrop where Q3 2025 revenue was $3.1 million, and the company was focused on achieving an EBITDA neutral Q4 2025, with cash on hand at $2.0 million as of September 30, 2025.

Automated, App-Driven Model (App is the Sales Force)

The core of the high-volume relationship is built around the software platform, which acts as the primary interface to the end-user base. This model supports the hundreds of thousands of end users who depend on Socket Mobile scanners daily across platforms like Shopify and Square.

• CaptureSDK has been integrated into thousands of applications.
• The new CaptureSDK 2.0, launched October 8, 2025, maintains 100% compatibility with the existing scanner base.
• Management projected most application partners would adopt CaptureSDK 2.0 within approximately 90 days of its release.
• The new SocketScan S721, built on the new platform, is scheduled for Q4 2025 release with a retail price of $199.

Dedicated Developer Support for CaptureSDK Integration

Socket Mobile, Inc. (SCKT) actively supports the developer community to ensure the automated model functions effectively. This support is crucial for maintaining the installed base and enabling new hardware adoption. The platform is designed to give app providers reliable and consistent data capture performance.

SDK Feature/Metric	Detail/Timeframe
Platform Update	CaptureSDK 2.0 launched October 8, 2025
New Technology Support	Bluetooth Low Energy (LE)
Developer Adoption Cycle Estimate	Approximately 90 days
Benefit to App Providers	Maximize solution value and increase customer productivity

High-Touch, Long-Cycle Sales for New Industrial Deployments

For new, large-scale industrial deployments, the relationship shifts to a high-touch, consultative model. This segment is seen as key to future growth, diversifying away from traditional retail POS. These deals involve significant vetting and integration time.

• Socket Mobile, Inc. (SCKT) has secured first purchase orders (POs) from multiple Fortune 50 companies in this segment.
• Initial rollouts show traction in verticals including warehousing, logistics, manufacturing, mining, energy, and construction.
• General B2B enterprise deals in 2025 can take 6 to 9 months or more to close.
• For the Manufacturing industry specifically, the average sales cycle in 2025 is cited at 130-day sales cycles.
• Deals targeting companies with 10,001+ employees-typical for Fortune 50-take an average of 185 days to close.

Direct Support for End-Users via Online Channels

End-user support is primarily driven through online, self-service channels, aligning with the automated model. This reduces direct support costs while providing necessary documentation for the extensive installed base.

You can find the necessary documentation on the Socket Mobile, Inc. (SCKT) website, which hosts product manuals, data sheets, and programming guides. This resource library helps users get the most out of their hardware.

• Documentation includes manuals for product families like DuraScan and SocketScan.
• The site offers resources to 'Shop by app' to find recommended readers.
• Users can compare barcode scanners and readers side by side based on key features and specs.

Socket Mobile, Inc. (SCKT) - Canvas Business Model: Channels

You're looking at how Socket Mobile, Inc. gets its products into the hands of users as of late 2025. Honestly, the story right now is all about the channel inventory situation. Revenue for the third quarter of 2025 hit $3.1 million, but management noted that this figure is driven by gross shipments to distributors, which were weaker than expected. This means the reported revenue doesn't perfectly match end-user demand.

The structure heavily relies on intermediaries. While the prompt suggests a split between App Providers' webpages and Online Resellers, the Q3 2025 commentary emphasizes that sales-out to end users via distributors remained stable compared to Q2 2025, even as distributor bookings slowed. This suggests a significant portion of sales flows through these indirect channels, waiting for a channel reset where distributors replenish their stock.

The Global Distributors channel is key for volume, but it's currently a source of near-term risk. The lower reported revenue of $3.1 million in Q3 2025 was directly linked to distributors cutting bookings and reducing their channel inventory levels. The gross margin for that quarter was 47.7%, compressed partly because fixed overhead costs were spread across those lower shipment volumes.

The Direct sales channel is where Socket Mobile, Inc. is focusing for diversification and larger, longer-cycle wins. This channel targets large enterprise and industrial rollouts. Management confirmed traction in industrial scanning and handheld computing, evidenced by initial purchase orders (POs) from multiple Fortune 50 customers. This is a strategic move to lessen reliance on the softer retail/POS segments.

For the Developer Portal, the focus is on enabling future hardware adoption. The launch of CaptureSDK 2.0 is foundational, supporting next-generation Bluetooth Low Energy (LE) hardware while maintaining backward compatibility. Management expects most partner applications to adopt this new SDK within approximately a 90-day developer update cycle, which is crucial for driving future sales of newer, lower-cost products.

Here's a quick look at the financial context surrounding these channels in Q3 2025:

Metric	Amount/Value	Period/Context
Reported Revenue	$3.1 million	Q3 2025 GAAP
Gross Margin	47.7%	Q3 2025
Operating Expenses	$2.5 million	Q3 2025
Operating Loss	$1,058,000	Q3 2025
Cash Balance	~$2.0 million	September 30, 2025
Operating Expense Reduction YoY	13%	Q3 2025 vs Q3 2024

Key channel activities and metrics include:

• Distributor bookings were much weaker than expected in Q3 2025.
• Sales-out to end users held steady versus Q2 2025, suggesting underlying demand.
• Industrial/enterprise rollouts are long-cycle but represent sizable, diversifying revenue.
• CaptureSDK 2.0 launch supports new Bluetooth LE hardware.
• Management is targeting EBITDA neutrality for the second half of 2025.

Socket Mobile, Inc. (SCKT) - Canvas Business Model: Customer Segments

You're looking at the customer base for Socket Mobile, Inc. (SCKT) as of late 2025, which is clearly bifurcating between its established markets and the new, high-potential industrial segment.

The overall financial context for the business in the third quarter of 2025 shows significant headwinds in the traditional segments, while the new focus is building momentum, albeit with long sales cycles.

Metric	Value (as of Q3 2025)	Comparison/Context
Trailing Twelve Months (TTM) Revenue	$15.95 Million USD	Down 13.01% year-over-year
Q3 2025 Revenue	$3.1 Million	Down 20% year-over-year
Q3 2025 Gross Margin	47.7%	Compressed from 49.9% in Q2 2025
Q3 2025 Operating Expenses	$2.5 Million	Reduced from $2.9 million in Q3 2024
Cash Balance (End of Q3 2025)	~$2.0 Million	Down from ~$2.6 million at the end of Q2 2025

Socket Mobile, Inc. historically serves several key areas, which are now being supplemented by the industrial push. The company's revenue is primarily driven by the deployment of third-party barcode-enabled mobile applications integrating their scanners and readers/writers.

Specialty Retailers (Point of Sale/POS)

This segment has been a core revenue driver, but recent performance indicates caution from channel partners. Management noted that distributor purchases were significantly reduced due to tariff concerns, impacting bookings and shipments in Q2 2025. The general business environment uncertainty caused project delays and postponements across the board.

• The company cited 'softer global demand' as a driver for the 20% year-over-year revenue decrease in Q1 2025.
• Retail POS growth was a theme in 2024, but Q1 2025 saw softness domestically and internationally.

Field Service and Commercial Services workers

This segment, alongside retail, transportation, and manufacturing, has been a primary revenue driver historically. The general softness in demand and cautious purchasing behavior from channel partners affected this group as well.

• These workers rely on mobile applications integrating Socket Mobile, Inc.'s data capture solutions for productivity.
• The company's strategy involves sustaining investments in sales-related opportunities tied to Apple platforms.

Industrial and Manufacturing (new focus with XtremeScan)

This represents the strategic pivot for Socket Mobile, Inc., aiming to redefine its financial trajectory by entering the ruggedized industrial computing space. The XtremeScan line is designed for harsh environments, offering military-grade durability and long-range scanning.

• The target market is the $27 billion mobile handheld computing market.
• Initial traction includes purchase orders for a long-term rollout from a Fortune 50 Tier 1 industrial customer.
• Targeted industries include warehousing, logistics, manufacturing, mining, oil and gas, energy, and construction.
• Sourcing exposure for materials includes Mexico at ~30% and Taiwan at ~20%.
• A large deployment was delayed to 2026, tempering near-term revenue visibility.

Healthcare, Event Management, and Transportation/Logistics

These sectors are explicitly mentioned as markets serviced by Socket Mobile, Inc.'s mobile applications, alongside retail, field service, and manufacturing. Logistics is specifically called out as a sector showing growing demand for real-time data capture at the edge.

• Transportation and logistics are included in the sectors where XtremeScan is seeing early momentum.
• Digital ID is also listed as a primary revenue driver market.

Application Developers (as a key enabler/partner)

Developers are a crucial segment because Socket Mobile, Inc.'s revenue is driven by third-party applications integrating their hardware. The company supports this segment with software tools.

• The launch of CaptureSDK 2.0 is strategic, improving speed and reliability, and easing partner upgrades.
• Management expects most partner applications to adopt CaptureSDK 2.0 within approximately 90 days.
• The company has a network of thousands of developers using their software developer tools.

Finance: review Q4 2025 cash flow projections against the $2.0 Million Q3 cash balance by next Tuesday.

Socket Mobile, Inc. (SCKT) - Canvas Business Model: Cost Structure

You're looking at the hard numbers driving Socket Mobile, Inc. (SCKT)'s operations as of late 2025, focusing on what it costs to get those data capture solutions out the door and keep the lights on. This structure reflects a company managing lower top-line revenue while aggressively controlling overhead.

Cost of Goods Sold (COGS) for hardware manufacturing is directly tied to the gross margin performance. For the third quarter ended September 30, 2025, Socket Mobile, Inc. reported revenue of $\mathbf{\$3.1 \text{ million}}$ and a gross margin of $\mathbf{47.7\%}$. This margin compression, which management noted was due to fixed overhead costs spread over lower volumes, means the implied Cost of Goods Sold for Q3 2025 was approximately $\mathbf{\$1.6213 \text{ million}}$ ($\$3.1 \text{ million} \times (1 - 0.477)$).

The company has shown strong cost discipline on the overhead side. Operating Expenses (OpEx) reduced to $\mathbf{\$2.5 \text{ million}}$ in Q3 2025, a $\mathbf{13\%}$ reduction compared to the prior year's $\mathbf{\$2.9 \text{ million}}$. This was a direct result of management's cost-saving initiatives implemented in anticipation of slower business activity.

When we break down that $\mathbf{\$2.5 \text{ million}}$ OpEx, specific line items for Research and development (R&D) for new product lines and Sales and marketing costs aren't itemized separately in the latest reports, but we know the strategic focus. Management remains committed to investing in new and existing products for the industrial market, and the launch of the new platform CaptureSDK 2.0 is a key R&D output supporting future hardware. The low Sales and marketing cost assumption, driven by the app-driven model, is reflected in the overall OpEx being tightly managed relative to the $\mathbf{\$3.1 \text{ million}}$ revenue base.

A new, significant financing cost entered the structure in mid-2025. The Interest expense on the $\mathbf{\$1.5 \text{ million}}$ convertible note stems from the secured subordinated convertible note financing completed on June 2, 2025. This note carries a $\mathbf{10\%}$ annual interest rate, payable quarterly in cash. This translates to an annual cash interest obligation of $\mathbf{\$150,000}$, or $\mathbf{\$37,500}$ per quarter, starting from the closing date.

Here's a quick look at the key cost drivers based on Q3 2025 performance and recent financing:

Cost Component	Latest Reported Amount/Rate	Period/Context
Implied COGS	$\mathbf{\$1.6213 \text{ million}}$	Q3 2025 (Based on $\mathbf{\$3.1 \text{M}}$ Revenue and $\mathbf{47.7\%}$ GM)
Total Operating Expenses (OpEx)	$\mathbf{\$2.5 \text{ million}}$	Q3 2025
OpEx Reduction (YoY)	$\mathbf{13\%}$	Q3 2025 vs. Q3 2024
Annual Interest Expense (New Note)	$\mathbf{\$150,000}$	Based on $\mathbf{\$1.5 \text{M}}$ note at $\mathbf{10\%}$ rate
Quarterly Interest Payment (New Note)	$\mathbf{\$37,500}$	Quarterly cash payment on $\mathbf{\$1.5 \text{M}}$ note

The focus on expense management is clear, as the $\mathbf{\$2.5 \text{ million}}$ OpEx is a deliberate step down from the prior quarter's $\mathbf{\$2.7 \text{ million}}$ and the prior year's $\mathbf{\$2.9 \text{ million}}$. Still, the gross margin dip to $\mathbf{47.7\%}$ shows that fixed manufacturing costs hit harder when revenue is down $\mathbf{20\%}$ year-over-year to $\mathbf{\$3.1 \text{ million}}$.

You should monitor the R&D spend closely, as management is positioning for 2026 strength through new product initiatives, which will eventually require increased investment, potentially pushing OpEx higher again once revenue stabilizes.

• New $\mathbf{\$1.5 \text{ million}}$ convertible note issued in June 2025.
• Note interest rate is $\mathbf{10\%}$ payable quarterly.
• Q3 2025 Revenue was $\mathbf{\$3.1 \text{ million}}$.
• Q3 2025 Gross Margin was $\mathbf{47.7\%}$.
• Operating Loss for Q3 2025 was $\mathbf{\$1,058,000}$.

Finance: draft 13-week cash view by Friday, incorporating the $\mathbf{\$37,500}$ quarterly interest payment schedule.

Socket Mobile, Inc. (SCKT) - Canvas Business Model: Revenue Streams

You're looking at how Socket Mobile, Inc. actually brings in the money, which is key to understanding its valuation right now. The revenue streams are heavily weighted toward hardware sales, but there are a few other pieces in play.

Sales of cordless barcode scanners and NFC/RFID readers (primary) form the backbone of the revenue generation. This is where the bulk of the cash comes from, driven by deployments of third-party barcode-enabled mobile applications across specialty retail, field service, digital ID, transportation, and manufacturing markets. The company's revenue is primarily driven by these hardware sales integrated with mobile applications.

Here are the top-line figures we're seeing as of late 2025:

Metric	Amount
Trailing Twelve Months (TTM) Revenue	$15.94 Million USD
Q3 2025 Revenue	$3.1 million

The TTM revenue of $15.94 Million USD reflects a challenging period, as the Q3 2025 revenue came in at $3.1 million, a 20% decrease year-over-year from the $3.9 million reported in Q3 2024. Still, management noted that sales out to end users remained stable compared to Q2 2025, which is an encouraging sign for underlying demand.

Beyond the core scanner sales, Socket Mobile, Inc. captures revenue through ancillary offerings:

• Revenue from accessories.
• Revenue from extended warranty services, specifically SocketCare.

For the extended warranty services, we can look at the deferred revenue balance, which gives us a sense of the committed service revenue not yet recognized. As of December 31, 2024, the unrecognized SocketCare service revenue stood at $30,725. That's a small piece, but it's recurring in nature.

The company is also exploring future recurring revenue models. One area of focus is the SocketCam subscription concept. While concrete revenue figures for this are not yet public or material as of late 2025, the strategic push is toward embedding more software value, especially with the launch of CaptureSDK 2.0, which supports next-gen Bluetooth LE hardware. This signals a clear intent to shift a portion of the model toward more predictable, recurring income streams, moving beyond pure transactional hardware sales.

Here's a breakdown of the known and potential revenue components:

• Primary Hardware Sales: Cordless barcode scanners and NFC/RFID readers.
• Service Revenue (Deferred): Unrecognized SocketCare revenue was $30,725 at the end of 2024.
• Future Recurring Revenue: Potential from the SocketCam subscription concept.
• Product Expansion Revenue: Sales from the new XtremeScan products targeting the industrial market.

Finance: draft 13-week cash view by Friday.